DC PROPERTY MANAGEMENT ACTUAL EXAM

DC PROPERTY MANAGEMENT ACTUAL / EXAM

QUESTIONS AND VERIFIED ANSWERS UPDATED

Keys to Asset Management - ---Answers---1. Focuses on the property's long term planning, leasing and asking rental rates

• Often negotiates commercial leases on behalf of the owner
• Evaluates the mortgage and opportunities to refinance the

loan

• Considers strategies to maximize value and when to market

the property for sale.***Collectively these items are focused on ways to maximize the Return on Investment (ROI)***

Capitalization Rate - ---Answers---Determined by the market and depends on various factors, including the property type, economic conditions, interest rates, location, and the property's condition. As a result, Capitalization Rates are not static.

How to Increase Value - ---Answers---A property manager can increase a property's value by operating it more efficiently through lower expenses. Reducing expenses, while maintaining Effective Gross Income, has a direct relationship to increasing its Value.

Objectives of Maintenance Program - ---Answers---1.Implementing and accomplishing the owner's objectives

• Increasing resident/tenant satisfaction and retention rates
• Reducing operating costs 1 / 3

• Optimizing the property's physical capabilities
• Increasing the property's value
• Providing for the safety of tenants, residents, visitors and

employees

Primary Objectives of An Inspection - ---Answers---1. What will be inspected?

• What is the frequency of the inspection?
• Who will conduct the inspection?
• How will the results be reported and implemented?

Payback Period - ---Answers---The Payback Period is one of the critical benchmarks in determining whether to move forward with a specific project. The Payback Period is the cost to implement the energy saving method divided by the money saved.

Four Maintenance Categories - ---Answers---1. Curative Maintenance involves fixing or repairing something after it has already broken. An example would be fixing a broken sink faucet.

• Deferred Maintenance is an ordinary maintenance item that

is not performed at the time when a problem is discovered.For example, when the manager notices some minor paint peeling in a stairwell, but delays hiring a painter until more painting work is needed. 2 / 3

• Routine Maintenance relates to the cleaning and upkeep that

is needed every day. An example is vacuuming the carpet in the building hallways.

• Preventive Maintenance is a planned activity that is routinely

performed with the intention of extending the useful life of the building and its equipment.

Included in the Certificate of Insurance - ---Answers---1.General Liability - General liability insurance (GL) coverage can protect the property owner from a variety of claims including bodily injury, property damage, and personal injury.

• Excess Liability - Excess liability or an umbrella policy is

issued to provide coverage limits in excess of an underlying General Liability policy.

• Workers compensation - Workers' compensation insurance

provides wage replacement and medical benefits to employees who are injured in the course of their employment.

Marketing Plan - ---Answers---Its primary goal is to identify as many qualified prospects as possible. The plan should clearly describe the subject property's strengths, particularly compared to its competition.

District of Columbia Real Estate Commission - ---Answers--- Protects consumers by enforcing the laws and regulations applicable to property managers including licensure.

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